HMV: Hilco Assumes Control Of Debt, Rescue Deal Possible

A deal to save HMV may soon be reaching a critical stage, as evidenced by Canadian restructuring firm Hilco assuming control of the ailing retailer's debt.

Hilco has taken responsibility of HMV's estimated debts of £176 million from Lloyds and RBS, though paid a substantially reduced sum due to the company's administration. This gives Hilco effective control of the retail chain, though doesn't mean that they own it outright.

HMV's suppliers recently negotiated generous credit deals to tempt in partners, and are said to favour Hilco as a potential buyer. Sky News has apparently heard that negotiations are currently ongoing with Deloitte, but that the deal could still fall through unless "significant changes" are made.

Fingers crossed, both for the high street institution and its 4000+ employees.